Internal migration and rural service provision in northern Ghana:

This paper uses a two-stage conditional maximum likelihood procedure and new data from Ghana to identify the determinants of rural-urban migration at the individual, household and community levels, with a particular focus on rural services. The econometric evidence supports the theoretical expectation that human-capital and network variables as well as assets are important determinants of migration. Taking the possible endogeneity of rural services into account, the evidence suggests that rural service improvements aimed at reducing economic isolation can enhance labor mobility and free up on-farm labor for migration by lowering transaction costs.Rural-urban migration, rural services, Development strategies,

Social services, human capital, and technical efficiency of smallholders in Burkina Faso:

This study applies regression analysis as well as a non-parametric method to survey data from Burkina Faso to analyze the role of human capital in explaining technical efficiency in smallholder agricultural production. Exploiting the panel nature of the data and explicitly treating human capital inputs as endogenous, a two-stage estimation method is used for the analysis of determinants of data envelopment analysis (DEA) technical efficiency scores in a double-bootstrap procedure. Findings suggest that the impact of human capital on technical efficiency differs strongly by gender. Strong positive returns exist for education of females, whereas male education is associated with higher inefficiency. Body mass index of adult females also positively relates to technical efficiency. At the community level, presence of a clinic, connection to the electrical grid, presence of a secondary school, and year-round accessibility of the community are found to be vital for human capital formation.Human capital, non-parametrics, public services, Smallholders,

Migration and technical efficiency in cereal production: Evidence from Burkina Faso

"This paper uses data envelopment analysis and new data from Burkina Faso to test the impact of intercontinental and continental migration on technical efficiency in the production of two cereals—millet and sorghum—by rural households. Econometric evidence supports our theoretical expectation that the impact of emigration varies by migrant destination. I find evidence of a positive relation between continental migration and technical efficiency and a negative relation between intercontinental migration and technical efficiency. In an imperfect market environment, continental migration is associated with greater efficiency because it removes a male labor surplus; explanations for the negative relationship between intercontinental migration and technical efficiency should be sought in a surplus of female labor supply. Overall, findings suggest that migration does not lead to a transformation of cereal production from traditional to modern, because in an imperfect market environment, liquidity received in the form of remittances cannot compensate for labor shortfalls." from authors' abstractMigration, Rural households, Data envelopment analysis, Science and technology, Agricultural innovation, Cereal production, Institutional change, Innovation systems,

The renewed case for farmers' cooperatives: Diagnostics and implications from Ghana

This study presents a stylized but insightful diagnostic of the problems limiting collective action in Ghanaian farmer-based organizations (FBOs). In our analysis, we use a structure-conduct-performance framework, econometrics, and new primary data for 500 FBOs collected through surveys and games. We find that most Ghanaian FBOs are inactive, failing to mobilize their members into any sort of collective action. To understand why this is so, we postulate that in rural Ghana, four typologies can be used to classify FBOs and to distinguish them on the basis of their membership structure and rules of conduct. We then show that FBOs fail to mobilize collective action whenever their structure and conduct are not aligned. In particular, misalignment leads mainly to problems of access to external credit and to a lesser extent to problems of internal cohesion. To maximize collective action, this study recommends the diversification of policy through recognizing the four different types of FBOs, each facing particular and to some extent opposing problems.Collective action, Cooperatives, econometrics, games,

Migration and Income Diversification Evidence from Burkina Faso

This paper uses limited-dependent variable methods and new data from Burkina Faso to test the impact of inter-continental and continental migration on activity choice and incomes in rural households. We provide theoretical reasoning and empirical evidence that the impact of emigration varies both by migrant destination and production activity. We find no evidence of either positive or negative effects of continental migration on agricultural or livestock activities and a small negative impact on non-farm activities. However, inter-continental migration, which tends to be long term and generates significantly larger remittances, stimulates livestock production while being negatively associated with staple and non-farm activities.Labor and Human Capital, D1, J2, Q12,

Spatial price transmission and market integration in Senegal’s groundnut market

The groundnut sector is the largest of Senegal’s agricultural sectors. It has been subject to various degrees of intervention since the country’s independence. Some, including the determination of farm prices by the government have survived the wave of reforms of the 1980s. Groundnut pricing policies have been the source of major transfers from farmers to the groundnut milling industry, which until 2007, was dominated by SONACOS, a publicly owned parastatal. The state was thus a major beneficiary of the transfers. In 2007, the company was privatized and is now privately owned, raising even greater concerns about the distribution of implications of pricing policies for groundnuts. The paper examines the potential ramifications of liberalizing groundnut prices in terms of its impact on prices received by producers and paid by the milling industry. One fundamental question in the analysis is the extent to which local markets would respond to such a move. To answer this question, the paper presents a dynamic model of price formation that uses estimates of spatial integration across local markets to measure the response of local agricultural prices to policy changes. We then apply this model to simulate the impact of liberalizing groundnut prices to allow domestic prices to reflect their international levels. We find that doing so would change prices in the border city of Dakar, which happens to be the central market that determines prices in the local markets of the producing regions of Kaolack and Fatick. We also find that if markets had been fully liberalized when SONACOS was privatized in January 2007, then groundnut prices would have been higher and that the increase in prices would have been passed on almost entirely to producers in Kaolack and, to a lesser extent, to producers in Fatick. Such reforms would have reversed the longstanding discrimination of groundnut farmers. Prices received by farmers in Kaolack over a period of one year would have increased from 352 FCFA/kg to 494 FCFA/kg of shelled groundnuts. For farmers in the Fatick region, prices would increase from 389 FCFA/kg to 474 FCFA/kg.groundnuts, Liberalization, marketing integration, pricing policies, Privatization,

A new generation of cooperatives for Africa

How to transform rural communities and farmer associations in Africa into modern and competitive enterprises, while preserving cooperative principles? How to develop democratic and farmerowned cooperatives that can also boost agri-business? 40% of agricultural commodities produced in the European Union (EU) are marketed through cooperatives. While in Africa, less than 5% of the agricultural surplus is sold through cooperatives. This shortfall is not due to lack of farmer cooperatives over the African continent. Here, every other rural village has at least one cooperative. Low commercialization by African cooperatives is due to “side-selling”, as member-farmers prefer quick, farm-gate and arm-length transactions with itinerant middlemen. Side-selling by member-farmers disrupts internal cohesion in cooperatives and affects the capacity of these organizations to vertically integrate into value chains and become viable businesses. A large body of research recommends African farmers to market their produce collectively, through cooperative organizations, in order to increase revenues for member-farmers. Hence, the main challenge for African Cooperatives is to convince their farmers to engage in collective marketing

The microeconomics of adaptation: Evidence from smallholders in Ethiopia and Niger

Climate change is expected to bring higher temperatures, changes to rainfall patterns and in many places increased frequency and severity of extreme weather. Climate change is slated to affect the global food equation both on the supply and demand side as well as local level food systems where small farm communities often depend on local and their own production. As climate change has become more pronounced, the risk to land-based food security faced by many of the world's poor, such as rural communities in Ethiopia and Niger, seems to have become more intense and less predictable. To avoid food insecurity in response to climatic and other stressors, adaptation by small-scale, subsistence farms needs to be accelerated. To effectively intervene to do so, there is a need to understand adaptive behavior in terms of its drivers and its relation with welfare outcomes such as food security. In this paper, we develop a conceptual framework of risk and adaptation, use regression and cluster analysis and the most recent version of the Living Standards Measurement Surveys data for rural areas in Ethiopia and Niger, to advance our understanding. We find that adaptation is associated with lower food insecurity in Ethiopia but not in Niger. Formal education appears as a central element of adaptive capacity and is associated with both adaptive production and income strategies. Female-headed households are much less adapted to a changing climate. Perceived risk based on past hazard experience is crucial for adaptation. Results from the cluster analysis confirm that spatial poverty traps exist. To maintain or enhance welfare in the short term and resilience in the long run in the face of a changing climate, policy makers would do well to focus on micro-regions identified as highly food insecure and build adaptive capacity through, for example, gender inclusive education interventions

Building trust in rural producer organizations: results from a randomized controlled trial

Trust is considered an important factor for successful collective action in groups of smallholder farmers. A prime example is collective commercialization of agricultural produce through producer organizations. While previous research has focused on trust as an exogenous determinant of participation in groups, this article tests whether trust within existing groups can be improved using a training program. We conduct a cluster-randomized controlled trial in rural Senegal to identify the effects of training members and/or leaders with respect to commercialization on intragroup trust. Our design allows identifying both direct treatment effects of having participated in the training and spillover effects on farmers who did not partake. Looking at different measures of trust in leaders’ competence and motives and of trust in members, we find that participating in the training significantly enhances both trust in leaders and trust in members. For trust in leaders, we also find a strong spillover effect. Our findings suggest that relatively soft and noncostly interventions such as group training appear to positively affect trust within producer organizations